Question 1 of 10 10 total questions
The satisfaction derived from consuming a good is its
A value
B utility
C cost
D price
Explanation Answer: B
Utility is satisfaction.
When government spends more than it earns, it runs a
A capital budget
B budget surplus
C budget deficit
D balanced budget
Explanation Answer: C
Spending more than revenue = deficit.
Which of these is a resource?
A land
B taste
C demand
D price
Explanation Answer: A
Land is a productive resource.
The rate at which one currency exchanges for another is the
A tax rate
B exchange rate
C discount rate
D interest rate
Explanation Answer: B
Exchange rate = value of one currency in another.
A tax on goods imported into a country is a
A subsidy
B tariff
C quota
D grant
Explanation Answer: B
A tariff is a tax on imports.
The difference between total revenue and total cost is
A rent
B interest
C profit
D loss
Explanation Answer: C
Profit = TR - TC.
Which factor of production is provided by the entrepreneur?
A land
B labour only
C capital only
D management/initiative
Explanation Answer: D
The entrepreneur provides initiative and management.
Money is used as a
A form of labour
B medium of exchange
C type of tax
D factor of production
Explanation Answer: B
Money serves as a medium of exchange.
When price falls, quantity demanded usually
A rises
B disappears
C stays constant
D falls
Explanation Answer: A
Demand rises as price falls.
Which is a basic economic problem?
A abundance
B scarcity
C wealth
D plenty
Explanation Answer: B
Scarcity is the fundamental problem.
Next
Question Navigator
1
2
3
4
5
6
7
8
9
10
